Career: American Family Insurance, 1963–1990, various positions
including agent, district sales manager, state director, regional vice
president, and executive vice president of field operations;
1990–1998, president and chief operating officer; 1998–,
chairman and chief executive officer.

■ Harvey R. Pierce climbed the corporate ladder at American Family
Insurance Group from the position of agent in 1963, to president and chief
operating officer in 1990, and to chairman of the board and chief
executive officer in 1998. Through his career at the top positions in the
company, his leadership allowed American Family to continue growth despite
difficult periods involving heavy losses due to claims as well as an
unstable stock market. An avowed family man, Pierce was actively involved
in numerous civil and charitable organizations. In 2000 he also penned a
children's Christmas book.

CLIMBS THE LADDER IN AMERICAN FAMILY

Pierce's life and career were relatively stable, given his rapid
rise through the ranks at American Family Insurance. He was born in 1942
in Hutchinson, Minnesota, and grew up in nearby Willmar, which is located
in the center of the state, west of St. Paul–Minneapolis. He
married his high school sweetheart, Delores, and for a time attended
Casper Community College in Casper, Wyoming. He joined American Family as
an agent in Minnesota in 1963 at age 20.

Over the next 14 years Pierce moved to several cities in Minnesota,
including Chaska, Windom, Fairfax, and Willmar. At one stop his family
moved to St. Joseph, Missouri. He held several positions at American
Family during his early years, rising from agent to district sales
manager, state director, regional vice president, and, eventually,
executive vice president of field operations. In 1987 he moved to Madison,
Wisconsin, where the headquarters of American Family was located.

Rising the corporate ladder to a leadership position within American
Family Insurance is not unusual. In 1990 Dale Mathwich, then the president
and chief operating officer at American Family, was elected as board
chairman and chief executive officer, replacing Robert Koch. Like Pierce,
Mathwich had begun his career as an agent and had risen through the ranks
to the top position in the company. When Mathwich was elected CEO and
chairman, the board chose Pierce to become the new president and chief
operating officer.

ASSUMES DUTIES AS PRESIDENT AND CHIEF OPERATING OFFICER

Pierce assumed his new duties after American Family had experienced
several years of growth. Between 1984 and 1990 the company's assets
had grown from $1.6 billion to $3 billion. Its policies had risen from 3.2
million in 1984 to 4.6 million in 1990, and the total amount of life
insurance in force had more than doubled from the previous five years.
When Pierce took over as president and chief operating officer, American
Family was doing business in 14 states.

In Pierce's first year as president and COO, American Family
announced that it had experienced a net loss, which was not unusual for
insurance companies. At that time Pierce maintained that the company had
continued to expand its business. Subsequent years were more successful
while Pierce was president. In 1995 the company announced an income of
$363 million, an increase of nearly $200 million from the previous year.
Two years later, in 1997, the company posted record sales and revenues,
based in large part on high returns on stock investments.

Pierce's years as president and chief operating officer did not
come without controversy. In 1995 it was revealed that top
executives within American Family had received double-digit raises even
though the company had announced that certain agent commissions would be
reduced significantly over a 10-year period. Four American Family agents
were fired after raising complaints against the insurance company's
management, including Pierce. In January 1996 a group of agents sought to
oust the board of directors, which then included Mathwich, Pierce, Albert
Nicholas, and Richard Renk. Although the agents cast about 1800 proxy
votes against the incumbent board members, the board remained intact by
receiving a high majority of the overall votes.

The following year, Pierce, along with Mathwich and others, was named in a
lawsuit against the company filed by two former American Family agents.
The agents reportedly supported a bill in Minnesota that would have banned
sales quotas imposed by insurance companies. American Family did not
support the law, and when the agents voiced their support for the
legislation, they were fired. American Family settled with the agents out
of court in 1998.

Despite the controversies, under the leadership of Mathwich and Pierce,
American Family increased its total policies from 4.6 million to 6.8
million from 1990 to 1998. The company tripled its total assets during
this period to $9.2 billion and became the 11th-largest insurance company
in the United States.

ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER

When Mathwich retired in 1998 after having served 42 years with the
company, American Family recognized Pierce's leadership, naming
Pierce chairman of the board and chief executive officer. Fittingly, the
Capital Times
referred to Pierce as an "avowed family man" as he took the
reins of the company (August 12, 1998). Pierce's style complemented
that of Mathwich, who was known as a "nice guy" within an
industry that is often known for cutthroat tactics (
Capital Times
, January 21, 1999).

In March 1999, when Pierce presided over the annual meeting of American
Family Insurance, his first after his election as CEO and chairman, the
company had stumbled through a difficult year. Record storm claims of $583
million hurt the company's income that year, which fell from $251.6
million in 1997 to $39.6 million in 1998. Despite the bad news, Pierce
"kept smiling" when he borrowed Mathwich's favorite
company motto, "We're still strong, growing, and
friendly" (
Capital Times
, March 3, 1999).

Pierce's first five years as chairman and CEO involved something of
a roller-coaster ride. In 2001 the company paid a record $834.9 million in
storm and catastrophe losses, though company profits were $100.4 million
during that year. During the following year, losses fell to $309.3
million, but the company's total income fell by 42 percent to $58.2
million due to a weak stock market. The company rebounded in 2003, when
net income increased by 167 percent to $155.4 million. Pierce remained
optimistic, noting in 2004, "Building and maintaining an
appropriate level of equity is part of what makes us a strong, stable
company. Our growth equity lets customers know they can count on us to
keep our promise to be there when they experience a loss" (March 2,
2004).

As American Family celebrated its 75th anniversary in 2002, Pierce said
that the company he led maintained values that were present from its
origins as Farmers Mutual Insurance Company in Madison in 1927. In a guest
column for the
Wisconsin State Journal
, Pierce wrote, "We remain committed to the same values that
Wittwer [the company founder] established 75 years ago: integrity, strong,
personalized consumer service, quality products, and a dedication to our
company's hometown" (September 29, 2002). By 2004, under
Pierce's leadership, American Family had expanded its areas of
operations to 17 states, with plans to continue expansion in later years.

FAMILY COMES FIRST

In keeping with the family atmosphere that the former chairman and CEO
Mathwich favored, Pierce maintained that his top priority remained his
family. His wife, Delores, described him as a "very kind, gentle,
patient man" in an interview with the
Wisconsin State Journal
(August 16, 1998). In this same interview Pierce noted of himself and
Delores, "We're pretty basic people. I think I'm very
family oriented, but when it comes to business, I'm very task
oriented." Two of Pierce's children served as agents for
American Family Insurance.

ACTIVE IN PROFESSIONAL AND CIVIL GROUPS

Throughout his career, Pierce remained highly active within his community
and in professional associations. In 2003 he was elected first vice
chairman of the board of directors for the National Association of
Independent Insurers. He was appointed to the board of the Insurance
Institute for Highway Safety and became its chair in 2004. He participated
on the University of Wisconsin Children's Hospital Advisory Board
and the Founders Club of Southwest Missouri State University Insurance
Chair. He also served on the boards of the United Way of Dane County,
Competitive Wisconsin, the Greater Madison Chamber of Commerce, and Family
Services in Madison. In addition, he was a member of the Wisconsin
Governor's Economic Growth Council, a member of the Key Club
Committee in Madison, and a trustee of the American
Institute of Charter Property Casualty Underwriters–Insurance
Institute of America.

In addition to his positions in various organizations, Pierce was visible
in his community. In 1994, while he was president and chief operating
officer at American Family, he personally delivered 300 stocking hats to
the Madison Police Department to be distributed to children in need.
American Family also made several sizable donations in the community, such
as a $20,000 gift in 1997 to a local housing project in Madison as well as
a $10 million gift in 2003 that allowed American Family to claim naming
rights to a new children's hospital. After the company donated the
money, Pierce was named to the hospital's advisory board.

In 2000 Pierce added a rather unusual entry on his resume: author of a
children's book. In his spare time he wrote a Christmas tale
entitled
A Box of Treasures
, which was sold at several locations in Madison. The book told the tale
of a box of ornaments awaiting placement on a family Christmas tree. The
book also included a family recipe for shortbread. Proceeds from the
book's sale benefited the United Way of Dane County.